The other thing advisors can help clients consider is their mortgage renewal. If it’s due in the next couple of years, they could calculate what they would then owe and readjust their budget to begin to save that amount now, then save that money to pay down some of principal when they renew.
“They’d have a little chunk of money, so they could pay down some of the principle,” she said. “That’s just being prepared because I don’t think interest rates are going to get back down to where they were.”
Dick said some of her clients are in today’s market to buy, while others are interested in locking in a fixed-rate mortgage rather than maintaining a variable rate-mortgage. But, housing isn’t as much of a concern for them as it appears to be in the media these days.
“So, if they bought their home to live in, they can relax,” said Dick. “I’ve lived in my home for 35 years and I’ve seen the price drop at least twice, maybe three times. But, over the years, just like any investment, it’s been fine.
“We’ve seen a housing correction, which has happened before. This one may be a little more severe, but I don’t think there’s a crash coming. In fact, I think prices will start to go up, but not like they did in 2021 and the early part of 2022. They’re not going to rise that fast.”
